Academy Sports and Outdoors reports 'challenging' quarter

By

Benjamin Fitzgerald

Published
Dec 8, 2022

Academy Sports and Outdoors Inc. announced on Wednesday revenues for the third quarter fell 6%, on the back of a decline in comparable sales.

The Katy, Texas-based company reported revenues of $1.49 billion, compared to $1.59 billion. Comparable sales declined 7.2%, on the back of fewer transactions compared to last year and a decline in hunting sales within the outdoors division. 

As a result, net income decreased 18.3% to $131.7 million, compared to $161.3 million. Diluted earnings per share were $1.62, a 5.8% decrease compared to $1.72 per share.

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During the quarter, Academy opened four new stores and has since opened three new stores in the fourth quarter, bringing the total number of stores opened in 2022 to nine, for a total of 268 stores. 

​"The third quarter was challenging for Academy; however, we delivered a good profit performance that, while below last year, was in line with our expectations. Our team continues to execute at a high level in an uncertain environment, delivering results well above pre-pandemic levels on all measures," said Ken Hicks, chairman, president and chief executive officer.

"Our focus is on our long-term growth opportunities in stores and online through consistent operational excellence, strong financial discipline, and executing our store and omnichannel expansion plans."

Year-to-date net sales decreased 6.4% to $4.65 billion, while comparable sales decreased 6.9%. 

Looking ahead, the company expects to open 80 to 100 stores over the next five years.

“Our year-to-date operating income has now surpassed that of fiscal 2019 and 2020 combined. This is a clear indicator that the operational and organizational improvements made over the past few years have structurally changed the earnings power of the Company and positioned us for future growth,” said Michael Mullican, executive vice president and chief financial officer. “As we close out the year, we remain focused on providing our customers with excellent service, broad assortments and value offerings."